Xerox Corporation announced on March 25, 2025, an offering of $400 million aggregate principal amount of Senior Secured First Lien Notes due 2030 and $400 million aggregate principal amount of Senior Secured Second Lien Notes due 2031. The proceeds from the First Lien Notes are intended to finance the redemption of $90 million of Xerox's 5.000% Senior Notes due 2025 and repay $95 million of borrowings under its credit facility.
The net proceeds from the Second Lien Notes offering are designated to fund a portion of the purchase price for the proposed acquisition of Lexmark International II, LLC, and to repay substantially all of Lexmark's outstanding debt. These proceeds will be deposited into an escrow account pending the consummation of the Lexmark acquisition.
Concurrently, Xerox disclosed that it has identified approximately $238 million in expected gross run-rate synergies from the Lexmark acquisition. This financing move and synergy identification are critical steps in advancing the Lexmark acquisition and strengthening Xerox's balance sheet.
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